Policy

VAT on Property Repairs - Heritage Buildings

Another area of concern relates to the issue of VAT on property refurbishment in general and on repairs to historic properties in particular.

We support the idea of reducing the rate to 5 per cent to decrease the differential between the refurbishment of older properties and new buildings, and between VAT-registered and unregistered businesses.

We also see an opportunity to reduce the rate of VAT on listed building repairs. Two-thirds of Britain's heritage is in private ownership; they contribute £1.2bn to the national economy.

As well as VAT reform, the provision of fiscal relief for the maintenance of historic properties that provide public access would help stimulate much needed investment and preserve the heritage tourism resource.